How ADF is Spearheading Indian Food Dominance in the International Market

Updated on: 22 August 2023 8:53 am

Mr. Bimal Thakkar, CMD, ADF Foods

The food industry is one segment that will always thrive and be in great demand, both within India and the international market. Today, food is more than an essential need- it is an indulgence and an element of instant gratification for the general public who are always on the lookout for delectable and convenient foods with authentic tastes that represent the culinary essence of a country, both within India and abroad. This is where ADF Foods, a renowned processed foods company, comes in. The company has come a long way since its inception in 1932 as a humble retail outlet. Today, it has a vast business presence and distribution network in 55 countries and prides itself on spearheading the dominance of Indian food in the international market.?

In these times when food has transcended from being a mere necessity to an indulgence and passion, ADF Foods has tapped into the desires of the discerning consumer. Bimal Thakkar, the Chairman & Managing Director of ADF Foods, articulates their approach, stating: "We ensure that a lot of thought, meticulous planning, research, and careful handling goes into making every single product at ADF. The company’s commitment to retaining the essence of Indian culinary traditions while adapting to modern tastes has struck a chord with consumers both in India and abroad.”?

Underpinning ADF Foods' success is its impressive portfolio of products, distributed across eight brands. From delectable ready-to-eat meals to sauces and chutneys, the brand caters to a diverse range of taste buds. Names like Ashoka, Truly Indian, and Soul have become synonymous with excellence, especially in overseas markets like Germany, the US, and the UK. In an increasingly competitive sector, ADF Foods thrives by infusing innovation and authenticity into each product and differentiating itself from its peers.?

A key strength that propels ADF Foods forward is its extensive distribution network. This network not only ensures the presence of its products in global markets but also extends to exclusive partnerships with distinguished brands like Brooke Bond, Taj Mahal, and Patanjali Ayurved Pvt Ltd. Through strategic collaborations, ADF Foods has managed to create a win-win scenario, bolstering its revenue while amplifying the reach of partner brands. Mr. Thakkar eloquently expands on this aspect, stating "Our partnerships stand as a testament to our unwavering commitment to elevate the reach and success of not only our brand but also the collaborators who share our vision. With an eye on the future, we have strategically established 2 warehouses in the USA and a step-down subsidiary to facilitate direct distribution in key markets such as New Jersey and Georgia.” This move is poised to usher in higher throughput and consequently, higher margins for the company, underlining the company’s emphasis on enhancing its distribution network for increased efficiency and profitability.?

Financially, ADF Foods has shown remarkable growth, as demonstrated by its first-quarter results for FY24. Standalone revenue surged by an impressive 17.2%, reaching Rs. 84.6 Crores. The company's EBITDA witnessed a staggering increase of 189.3%, standing at Rs. 21.1 Crores, while Profit After Tax (PAT) grew by 121.0% to touch Rs. 16.4 Crores. Through this, the company has already achieved the run rate of the last fiscal year in the first quarter itself. Mr. Thakkar elaborates on the brand's aspirations: "Our robust Q1 performance lays a solid foundation for our trajectory ahead. This trajectory is characterized by our consistent dedication to practicing innovation, quality, and global flavor fusion.”?

The company has positioned itself for growth by leveraging multiple strategic opportunities to strengthen its market presence. The company looks forward to enhancing its global footprint through the PLI scheme. It is also striving to consistently improve its financial risk profile which is underlined by its recent development of becoming net debt free. Innovation remains a driving force, with the company dedicated to crafting a portfolio that resonates with evolving consumer tastes.?

Infrastructure development shall play a crucial role in ADF Foods' expansion strategy. The management plans to establish multiple warehouses in key regions to increase its market penetration and ensure that its products reach a wider audience. Apart from this, the company’s Surat-based greenfield project will enhance its frozen foods production capacity. In a regulatory filing, the company stated that it has completed the phase one planning for this facility and intends to ground break in Q2 FY24. Furthermore, it also remains committed to its debottlenecking initiatives at existing facilities and streamlining operations to maintain a competitive edge in the market.?

As ADF Foods looks ahead, its vision is crystal clear - to continue crafting an unparalleled legacy in the culinary realm. Mr. Thakkar explains that he envisions a future where ADF Foods dons the mantle of a globally renowned ethnic food leader. "Our path forward shall be characterized by innovation, distribution expansion, and value creation for our shareholders," he states with conviction. The brand's future expansion plans echo this commitment- to leave behind a resounding legacy that etches its mark on the palates and hearts of food enthusiasts across the globe.?